ICICI Bank Education Loan for Study Abroad: Complete Guide

ICICI Bank, one of India's largest private banks, offers large education loans to Indian students admitted to qualifying institutions abroad. The ICICI Bank's Education Loan application process can be completed online, has no-collateral options, and offers attractive interest rates.¹

Learn more about the ICICI Bank Education Loan, including how it works, how to apply, and what to expect when repaying the loan.

ICICI Bank Study Abroad Loan Amount

ICICI Bank iSmart Education Loan is available up to INR 2 crores for studies abroad. You don't need to provide any collateral for loans up to INR 1 crore for job-oriented undergraduate and postgraduate courses offered by accredited institutes.¹

Loans above INR 1 crore require collateral which can be fixed deposits, new property mortgages, or existing mortgage loans.

Eligible Universities and Covered Expenses

While ICICI offers education loans for domestic universities in India, you can also get a loan for undergraduate or postgraduate diplomas or professional courses offered by accredited universities overseas.

The ICICI Bank Education Loan would cover the following expenses for an international students:²

• Tuition fees.
• Hostel fees.
• Examination, library, or laboratory fees.
• One-way air ticket, or travel expenses, to the university.
• Insurance premium for the student.
• Refundable deposits, if required by the university.
• Cost of books, uniforms, equipment, and instruments necessary for the course.
• Computer purchase, if essential for completing the course.
• Other study-related expenses like project work, thesis, or study tours.

Requirements to Apply for ICICI Bank Education Loan

ICICI Bank Education Loan offers high loan amounts which can be helpful to pay for expensive universities abroad. The loan can come with high fees, but the requirements for students admitted to a premier university abroad can be flexible. Here is an overview of the loan application prerequisites.³

Student Eligibility

To be eligible to apply, the student is required to meet the following:

• Be an Indian national.
• Have been accepted to an approved university for a diploma or degree program
• Have completed Standard 12 (10 plus 2).

ICICI Bank also looks into your credit score to qualify you for a loan.

Collateral Security

ICICI Bank does not require collateral for loans up to INR 1 crore from students accepted into premium institutes overseas.

To apply for loans from INR 1 crore to INR 2 crores, you must provide 100% of the loan amount as collateral. The collateral can be fixed deposits, new mortgages, or supported by existing mortgage loans.

Upfront payment

An ICICI Bank Education Loan does have processing fees to be paid by the borrower, plus upfront payments when you take out a loan. You can expect the following bank service charges with your loan application process:³

ICICI Bank does not require a margin for education loans up to INR 1 crore for premier institutes abroad. For loan loans above INR 1 crore, a margin of 15% is required.

Instant Education Loan for ICICI Customers

Existing ICICI customers can take advantage of the bank’s Instant Education Loan.⁴ It allows customers to be pre-approved for the loan, even before the student has been accepted to the university.

Eligible existing ICICI Bank customers can access an instant sanction letter, which can help evaluate payment options for education expenses and also be helpful for securing a student visa for traveling abroad. You can log in through your existing ICICI account online to apply and receive the letter digitally. With the Instant Education Loan option, ICICI Bank offers a no-collateral option and an attractive interest rate for Instant Education Loan up to INR 1 crore for eligible existing customers.

Interest Rates for ICICI Bank Education Loan

ICICI Bank Education Loan interest rates can range from 9.85% to 15.50% per annum, depending on the collateral offered and your CIBIL credit rating.⁴

Loan Repayment Terms for ICICI Bank Education Loan

ICICI Bank offers a moratorium (grace period where no repayments are required) that covers the duration of the course plus an additional six months.³ After that, the repayment period starts, where you must make principal plus interest payments to the bank.

The maximum loan repayment tenure depends on the course you go for. For undergraduate studies, ICICI Bank offers a loan tenure of up to 8-10 years after completing the moratorium. For post-graduate studies, ICICI Bank offers a loan tenure of up to 10-12 years after completing the moratorium.

Your repayment schedule may also depend on your loan amount and credit profile at the time of application.

How to Apply for ICICI Education Loan for Study Abroad

ICICI Bank offers the option of applying for the Education Loan online, and you can also apply in person at an ICICI bank branch.

Documents Required for ICICI Bank Education Loan

A key part of the application process is providing documents to support your application. Here are some documents you may be asked for:³

• KYC documents such as ID and address proof of all borrowers
• Income proof for co-borrowers.
• Marksheet of Standard 10, Standard 12, graduation, and entrance exams.
• Admission letter from the university or college.
• Fee structure and disbursement schedule.
• Additional documents for collateral, as required.

Apply Online

Here are the steps to apply for an education loan online through the ICICI Bank website:

1. Head to the ICICI Bank's iSMART Education Loan portal and click 'Apply Now'.
2. Select whether you are applying for a new loan or transferring an existing education loan, and provide the details.
3. Provide your residency status.
4. Enter your PAN and personal details.
5. Confirm whether or not an ICICI Bank associate has assisted you with the application.
6. Agree to the Terms and Conditions after reading them.
7. Click 'Proceed' to complete the online education loan application process.
8. ICICI Bank officials will contact you to complete the formalities.

Alternatively, you can apply for the ICICI Bank Education Loan through the Vidya Lakshmi portal. To use this option, select ICICI Bank when choosing the financial partner while completing your application on the portal.

Apply in person

You can also head to the nearest ICICI Bank branch to apply for the ICICI Bank Education Loan in person. You can reach out to ICICI Bank by calling toll-free 1800 1080 or sending an SMS 'ELOAN' to 5676766.

ICICI Education Loan Disbursal Process

After being approved for the loan, ICICI Bank disburses the loan funds directly to the university based on the provided payment schedule. You can also ask ICICI Bank to refund any university fees you had paid directly if you provide the original receipts.

ICICI Bank provides the option to transfer living expenses from the loan amount to a Forex card or to the borrower's overseas bank account. The bank further offers a Foreign Currency Account⁶ for Indian students going abroad to study in Canada or the UK. The funds disbursed to this account are held in local currency and can be used to manage expenses while studying abroad.

Start your journey with Wise: the world’s most international account⁷

Starting a new course as an international student can come with many expenses. Once you arrive abroad for your studies, check out the Wise multi-currency account available for residents living in supported countries. Enjoy an account as worldly as you are and spend just like a local when you travel abroad with a linked debit card, while also paying less in fees.

Please see the Terms and Conditions for your region and visit our pricing page for the most up-to-date pricing and fee information on Wise products.